Shares of FedEx (FDX)
traded with losses of up to 7% in Wednesday's trading session. The global
transportation and e-commerce firm reported a disappointing set of third quarter
results accompanied by a lowered full year outlook.
Third Quarter Results
FedEx generated third quarter revenues of $11.0 billion, up 4% compared to last year. Revenues came in ahead of consensus estimates of $10.85 billion
Despite the modest uptick in revenues, operating income came under severe pressure. Operating income fell 28% to $589 million, as operating margins fell 230 basis points to 5.4%. The main reason for lower profits is the accelerating shift of demand towards lower-yielding international services.
Read the entire article on Seekingalpha by clicking the following link
Third Quarter Results
FedEx generated third quarter revenues of $11.0 billion, up 4% compared to last year. Revenues came in ahead of consensus estimates of $10.85 billion
Despite the modest uptick in revenues, operating income came under severe pressure. Operating income fell 28% to $589 million, as operating margins fell 230 basis points to 5.4%. The main reason for lower profits is the accelerating shift of demand towards lower-yielding international services.
Read the entire article on Seekingalpha by clicking the following link
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